Mercedes-Benz sales in China slump 28% as global H1 deliveries fall 6%
Mercedes-Benz sales in China fell 28% in H1 2026, contributing to a 6% global decline as BEV demand grows in Europe and North America, and new models due in H2.
Mercedes‑Benz reported a marked slowdown in the first half of 2026, with worldwide deliveries of cars and vans totaling 1.01 million units, down six percent from a year earlier. Mercedes‑Benz sales in China were singled out as a major factor: passenger car deliveries in the market fell sharply to about 210,000 units, a 28 percent drop versus the same period in 2025. The automaker said the slide was concentrated in models with internal combustion engines and reflected intensifying competition and more cautious consumer sentiment. Company officials emphasized that China remains strategic to Mercedes‑Benz’s localization and innovation plans even as the market weakens.
Sharp decline in Chinese passenger car deliveries
Mercedes‑Benz sold roughly 210,000 vehicles in China in the first half of 2026, a decline that dwarfed gains elsewhere. The company pointed to falling demand for combustion‑engine models as the principal cause of the China shortfall in the second quarter. Analysts and industry peers also noted that higher fuel costs following geopolitical developments increased the cost of ownership for petrol and diesel cars, undermining sales momentum. BMW had previously cited a similar negative effect in the Chinese market, underscoring a broader trend among traditional premium manufacturers.
Europe and North America record growth that offsets some losses
Outside China, Mercedes‑Benz managed to expand deliveries, with total sales up three percent for the group. In Europe the company reported a five percent rise in deliveries to roughly 325,000 vehicles from January through June, driven in part by stronger demand for electric models and several new product launches. North America posted the strongest regional increase, with deliveries climbing 15 percent to about 180,900 units, supporting the group’s global performance despite China’s retreat. Company statements linked these gains to a refreshed model lineup and improving market acceptance of its battery electric vehicles.
Electric vehicle sales accelerate globally
Battery electric vehicle (BEV) deliveries continued to outpace the broader market, with Mercedes‑Benz selling 52,900 fully electric cars worldwide in the second quarter, an increase of 51 percent year‑on‑year. In Europe the company reported an 87 percent surge in electric‑car deliveries in the quarter, reflecting robust consumer demand for its newest electric models. Mercedes‑Benz’s global BEV growth meant that approximately one in eight passenger cars sold by the company in the quarter was a fully electric vehicle. Sales executives described the electric portfolio as a key growth engine while acknowledging that the brand still lags Chinese competitors in that segment within China.
Company attributes decline to competition, consumer caution and model rollout timing
Mercedes‑Benz attributed the broader downturn in passenger car volumes to fierce competition, subdued buyer sentiment and the staggered introduction of new models. Management noted that the challenges intensified in the second quarter, especially for combustion‑engine vehicles, as buyers delayed purchases amid higher operating costs. The company said it expects some of the shortfall to be addressed by an upcoming wave of new product launches. Executives also stressed that China’s market dynamics—where electric models dominate overall industry growth—present a structural headwind for European premium brands that have not captured the same share of local EV demand.
Outlook, targets and shareholder considerations
Despite the year‑to‑date decline, Mercedes‑Benz reiterated its medium‑term ambition to restore passenger car sales toward roughly two million units annually. The group reported that last year it delivered just over 1.8 million passenger cars and acknowledged the need to close the gap with product and commercial measures. Full second‑quarter financial results, including revenue and profit figures, are scheduled for publication at the end of July, a release investors will watch closely for margin and cost‑reduction updates. Recent cost‑cutting plans have attracted criticism and labor protest, signalling potential reputational and employee‑relations risks as management pursues efficiency.
Mercedes‑Benz said it remains committed to China as a central market for innovation and localization while preparing new S‑Class, GLE and other model rollouts expected to support performance in the second half of 2026.
